VICTORIA – EnCana Corporation (the
proponent) has received an environmental assessment certificate for its Cabin
Gas Plant Project.

Environment Minister Barry Penner
and Energy, Mines and Petroleum Resources Minister Blair Lekstrom made the
decision to grant the certificate after considering the review led by B.C.’s
Environmental Assessment Office (EAO).

The project will
process up to 800 million standard cubic feet per day of natural gas, and be
located approximately 60 km northeast of Fort Nelson. The project will be
constructed on one square km of provincial Crown land. The existing EnCana Horn
River Pipeline will supply the raw gas to the project, and the processed gas is
anticipated to be transported from the project to consumers by TransCanada
Pipelines Limited’s proposed Horn River Mainline Project, currently being
reviewed by the National Energy Board.

The EAO’s assessment report
concluded the project is not likely to result in any significant adverse
effects, with the exception of carbon dioxide emissions. To address this, the
plant will be built “capture ready”, and the proponent has committed to working
further with government and industry to explore carbon capture and storage
options. In addition, the plant will be subject to B.C.’s Greenhouse Gas
Reduction (Cap and Trade) Act, which is a key pillar in B.C.’s plan to reduce
GHG emissions 33 per cent by 2020. The issuance of an environmental assessment
certificate does not limit government’s ability to restrict GHG emissions
through the cap-and-trade system or other applicable law.

The proponent will also be required
to comply with 60 other legally binding commitments. These include:

·Requiring contractors to use energy-efficient equipment such as premium-efficiency electric motors and energy-efficient natural gas
generators to reduce the project’s CO2 emissions.

·Providing construction and operations personnel with wildlife
awareness training, prohibiting the harassment of wildlife and minimizing
impacts to birds during breeding season.

·Hiring locally, including First Nations, and using local goods
and services.

·Using seasonal roads and co-ordinating with regional emergency
service providers to decrease the impact of the project on those services.

·Developing a site restoration and reclamation program prior to
the decommissioning of the project.

The project did not trigger an
environmental assessment under the Canadian Environmental Assessment
Act. Before the project can proceed, the proponent will need to obtain
necessary provincial licenses, leases and other approvals.

The Fort Nelson First Nation, Dene
Tha’ First Nation, Halfway River First Nation, Prophet River First Nation, Doig
River First Nation, West Moberly First Nations, Saulteau First Nations,
Blueberry River First Nations and the Treaty 8 Tribal Association were consulted on the environmental assessment, and the B.C.
government is satisfied the Crown’s duties to consult and accommodate First
Nations have been discharged.

The capital cost of the project is
expected to be approximately $800 million to $1 billion, and the project will
contribute approximately $2.2 billion to provincial GDP and
$1.2 billion to GDP in northeast B.C. The project will also help generate $4
billion to $6 billion in provincial revenue over its 25-year lifespan, and
approximately $1 million per year in taxes to the Northern Rockies Regional
Municipality. The 28-month construction phase is expected to generate an
estimated total of 267 person-years of direct, full-time employment. The
operations phase is expected to generate an estimated total of 1,000 to 1,250
person years of direct, full-time employment.

More information on the environmental assessment certificate
can be found at www.eao.gov.bc.ca.

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Contact:

Suntanu Dalal

Media Relations

Ministry of Environment

250 387-9745

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